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Jeff Johnson

Excellent Buyer Opportunity - Specialty Clothing & Sportswear Store For Sale

Staff | Tuesday Sep 04, 2018

FOR SALE: Specialty Clothing & Sportswear Store

Location: Southern Wake County

Asking Price:  $530,000

Down Payment:  $53,000

Business Description: This business specializes in fashionable clothing options for adult and youth dancers, cheerleaders & gymnasts. Revenue has increased over 20% in the last three years. With an extremely large and loyal customer base and a newly updated rewards program combined with online sales, the business is on track for another increase in 2018. The seller estimates that 60% of the current customers are recurring.  Key employees with special customer relationships will remain after the sale.

Operating Performance

 

2016

2017

2018*

Net Revenue

$1.4 Mil

$1.4 Mil

$1.1 Mil

Seller’s  Discretionary Earning

$103,000

$158,000

$156,000

*2018 operating performance is an annualized estimate.

FF&E*:  $23,000

Inventory*:  $200,000

*Included in Asking Price

Year Established:  2006

Employees:  4 full-time, 17 part-time

Management Functions/Licenses: The owner is responsible for overall strategic direction of the company, hiring, marketing and ensuring thorough execution and high levels of customer service. The owner must have a minimum knowledge of the disciplines of dance, gymnastics and cheerleading in order to understand the details of the retail industries.

Assets:  This business has few furniture and fixtures, but has sellable inventory.

Facilities:  The building in which the business currently operates is a leased space in a retail shopping center in a high-traffic area. The current space is approximately 5,000 square feet, allowing for fitting rooms, shoe store and gift shop.

Customer Base:  The Business has high customer loyalty and reliable repeat business.  The owner estimates that 60% of customers are returning and repetitive as styles and children’s sizes change.The Business relies on marketing through a strong customer referral network with local studios and gyms.  Strategies such as advertisements in recital programs, donations of gift cards for raffle baskets work best according to the owner.

Growth/Expansion:  The Business’s name and location is readily recognized in the area. The biggest opportunity for growth is to increase the percentage of online sales. The initial efforts of the current owner will materialize as the industry turns more online.  

Financing:  If desired, the Seller will provide seller financing up to $79,500 to a qualified buyer for 120 months at 7%.

Support/Training:  Seller will provide transition training for up to 4 weeks at $1,120 cost.  Additional support available on a consulting basis.

Reason Selling:  Owner seeks to retire.

For more information, please contact:

Heather L..Holding

Murphy Business & Financial – Raleigh

h.holding@murphybusiness.com

919-719-2717

Inventory fluctuates throughout the year.  The Purchase Price includes $200, 000 worth of inventory and deposits on inventory.  At closing, the Purchase Price will be increased or decreased depending on the actual inventory on hand.

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